SGX will trade securities all day starting Aug. 1

Singapore Exchange’s (SGX) securities market will trade continuously all day from 1 August.

Market hours will therefore overlap more with those of other Asian exchanges, enabling investors trading pan-Asian securities to respond to regional market movements and news flow.

Investors will also face less risk as they will be able to manage their open positions in the securities market non-stop between 9.00am and 5.00pm Singapore time. SGX’s derivatives market already trades continuously.

Continuous all-day trading will enhance Singapore’s competitiveness as an international financial centre.

In Asia, Korea Exchange, India’s National Stock Exchange and Australian Securities Exchange already trade non-stop all day. Other international exchanges such as New York Stock Exchange, NASDAQ and London Stock Exchange also operate continuous trading sessions.

More recently, Hong Kong Exchanges and Clearing has increased its trading hours while Tokyo Stock Exchange plans to do so in the near future. Both have cited the need to strengthen competitiveness and enhance convenience for investors.

Once trading is continuous all day, SGX Member firms will offer retail investors various ways to execute orders. These include online trading services, the use of central dealing desks where orders can be channelled for order execution when Trading Representatives or brokers are away, the appointment of a back-up Trading Representative, and the use of mobile technology by Trading Representatives to execute orders when they are off-premises.

“We welcome continuous trading giving investors the ability to respond to regional market movements, and flexibility to execute orders any time during the trading day. We are very pleased that SGX Member firms will offer a range of different services for investors to access the markets, giving more choice and flexibility to the investor,” said Mr David Gerald, president of the Securities Investors Association (Singapore). More information on broker services for retail investors is provided below.

“Continuous all-day trading will offer all investors more opportunities to trade and manage their risks. By embracing trading hours which are aligned with those of other key markets, Singapore will make further progress as an international financial hub,” said Mr Magnus Bocker, CEO of SGX

Broker services for retail investors:

Member firms are providing various services to ensure seamless trading for retail investors when the securities market trades continuously all day. In some cases, Trading Representatives (dealers and remisiers) will man their desks throughout the period between 12.30 pm and 2.00 pm, when the market previously shut for the midday break. If they are away from their desks, Member firms will use existing arrangements to service investors’ needs. These include:

the use of central dealing desks, where Trading Representatives may channel their customers’ orders to central dealers (who are licensed Trading Representatives) for order execution;

the appointment of a back-up Trading Representative to handle customers’ orders when the primary Trading Representative is away from the office;

the use of mobile technology or hand-held equipment for order execution by Trading Representatives who are working off-premises.

Investors can also use other channels, such as on-line internet trading services to directly execute orders.